New patent agreement between LG and Nokia

The technology giants LG and Nokia have agreed upon a deal to take a royalty-bearing smartphone patent license from Nokia Technologies. The smartphone patent wars have been going on for quite a while now and with other companies patenting their innovations as soon as they are created, it is getting tough.

Nokia was once the leading mobile handset manufacturer, but since smartphones were introduced, Nokia has been losing market steadily to Apple, Samsung and other Smartphone manufacturers. But they are trying to make headway and gain market share in the lucrative Smartphone business.

“We are pleased to welcome LG Electronics to our licensing program,” Nokia Technologies President Ramzi Haidamus said in a statement. Currently, Nokia offers its telecommunication services to well over 60 companies. This joint venture of the companies will see both the companies working together for a long time towards mutual interest and profit.

“We’ve worked constructively with LG Electronics and agreed on a mutually beneficial approach, including the use of independent arbitration to resolve any differences. This agreement sets the scene for further collaboration between our companies in future,” Haidamus said.

Both the companies have signed the agreements which will dictate under what rules the companies will be working together and sharing the profits. The royalty payment conditions are expected to conclude within one or two year time frame.